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Silent Type

(10,544 posts)

1. $25,000 deduction applies to cash, credit card, and debit card tips.

Reply to imanamerican63 (Original post)

Tue May 27, 2025, 10:10 PM

May 27

I think original bill said “cash,” but in tipland cash and credit card tips are both counted.

Senate Bill makes it clear according to Money Magazine.

“The Senate bill lets workers deduct 100% of qualifying tipped income, including tips that come from cash, debit and credit card transactions.”

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Oh my! Those tax free tips for the food service industry? [View all] imanamerican63 May 27 OP

$25,000 deduction applies to cash, credit card, and debit card tips. Silent Type May 27 #1

on the other hand, they lose earnings WhiteTara May 27 #2

No they don't. They still have to report tips and pay FICA. Silent Type May 27 #3

Oh. I didn't realize it was just federal WhiteTara May 27 #5

That I'm not sure. I think states would have to change their tax laws. My state will for sure in deference to trump, Silent Type May 27 #7

Guessing in a lot of places Mountainguy May 27 #4

I always pay my bill w/ a credit card Chuuku Davis May 27 #6